State Bank of India (SBI) on Wednesday raised $600 million through issuances of five-year US dollar-denominated bonds at a coupon rate of 5.1%. The bond sale, conducted by the London branch of SBI, evoked strong response with global investors putting in bids worth $3.5 billion.
“Participation in the bond sale was from large high quality long only asset managers from Asia and EMEA (Europe, Middle East and Africa),” a source told FE. “The bond issuance was priced at a spread of 150 basis points over the five-year US Treasury yield,” the source added.
Bank of America, BNP Paribas, HSBC, JP Morgan, MUFG and Standard Chartered Bank were the joint lead managers. Proceeds from the bond issue will be used for general corporate purposes and to meet the funding requirement of SBI’s foreign offices and branches.
SBI is tapping the dollar bond market for the second time in less than a month. The lender had raised $250 million through the issuance of green bonds in the last week of December.